Rental prices in Portugal declined 1.4 percent in February compared to the previous month, offering a brief pause after sustained increases throughout much of 2025. According to the latest data from real estate platform idealista, the national median rent now stands at 16.2 euros per square metre, moving further away from the historic peak of 17 euros per square metre recorded in October last year.
Although the monthly trend points to moderation, the broader annual picture remains mixed. Rental prices increased year on year in 9 of the 15 district capitals and autonomous regions analysed. The strongest annual growth was recorded in Bragança, where rents rose 16.9 percent. Coimbra followed with an 11.4 percent increase, while Leiria posted a 10.4 percent rise. Viana do Castelo, Setúbal and Ponta Delgada also reported notable annual gains ranging between 9 and 10 percent.
Additional annual increases were observed in Castelo Branco, Faro and Aveiro, reinforcing the trend of upward pressure in several mid sized and regional markets. Analysts suggest that shifting demand patterns, remote work flexibility and internal migration may be contributing to stronger performance outside the traditional metropolitan hubs.
In contrast, some urban markets experienced annual declines. Porto recorded a 2.5 percent drop compared to the previous year, while Braga fell 1.6 percent. Évora and Viseu also registered modest decreases. Lisbon, the country’s most expensive rental market, showed relative stability with a slight annual decline of 0.5 percent. Funchal remained broadly stable with a marginal increase of 0.5 percent.
Lisbon continues to lead the national ranking in rental costs, with an average price of 21.7 euros per square metre. Porto follows at 16.8 euros per square metre, while Funchal stands at 16.2 euros per square metre. Faro, Setúbal and Coimbra form the next tier of higher priced markets, reflecting ongoing demand in coastal and university driven cities.
In the mid range segment, cities such as Évora, Aveiro and Ponta Delgada present average rents between 11 and 12 euros per square metre. Braga, Viana do Castelo and Leiria remain more affordable but still show steady demand dynamics.
The most economical district capitals continue to be Viseu, Castelo Branco and Bragança, where rental prices remain below 8 euros per square metre. These regions have historically offered lower housing costs, though recent annual growth figures indicate increasing interest in some of these areas.
The February adjustment suggests a short term cooling in Portugal’s rental market, yet the underlying annual data highlights persistent structural pressures in several regions. As housing affordability remains a key policy issue nationwide, upcoming months will determine whether this monthly decline signals a broader stabilization trend or simply a temporary correction within an overall upward cycle.
